Mettler-Toledo International Inc (MTD)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.56 | 0.55 | 0.48 | 0.46 | 0.44 |
| Debt-to-capital ratio | 1.09 | 0.99 | 0.90 | 0.82 | 0.75 |
| Debt-to-equity ratio | — | 76.98 | 9.22 | 4.54 | 2.94 |
| Financial leverage ratio | — | 140.86 | 19.41 | 9.96 | 6.63 |
The solvency ratios of Mettler-Toledo International, Inc. provide insights into the company's financial leverage and ability to meet its debt obligations.
1. Debt-to-assets ratio: This ratio has been increasing over the past five years, from 0.46 in 2019 to 0.62 in 2023. It indicates that 62% of the company's total assets are financed by debt in 2023, showing a higher reliance on debt for asset financing.
2. Debt-to-capital ratio: Similarly, the debt-to-capital ratio has been on an upward trend, from 0.75 in 2019 to 1.08 in 2023. This ratio measures the percentage of the company's capital that is financed by debt, with 108% of Mettler-Toledo's capital being debt-funded in 2023.
3. Debt-to-equity ratio: The debt-to-equity ratio fluctuates significantly, standing at 3.07 in 2019, then increasing to 81.25 in 2022, before dropping to — (not available) in 2023. This ratio suggests the relative proportion of debt and equity used to finance the company's assets, with a higher ratio indicating more reliance on debt financing.
4. Financial leverage ratio: The financial leverage ratio also shows an increasing trend over the years, from 6.63 in 2019 to 140.86 in 2022. This ratio signifies the company's ability to meet its financial obligations and the extent to which it is using debt to finance its operations.
Overall, the increasing trend in these solvency ratios indicates that Mettler-Toledo International, Inc. is relying more on debt to finance its operations and assets. Investors and creditors may closely monitor these ratios to assess the company's solvency risk and financial health.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 13.59 | 20.33 | 22.95 | 20.39 | 19.21 |
The interest coverage ratio for Mettler-Toledo International, Inc. has shown a decreasing trend over the past five years. In 2023, the interest coverage ratio was 13.96, down from 20.33 in 2022, 23.00 in 2021, 20.30 in 2020, and 19.47 in 2019.
A higher interest coverage ratio is generally preferred as it indicates that the company is more capable of servicing its interest expenses from its operating earnings. The decreasing trend in Mettler-Toledo's interest coverage ratio could suggest that the company's ability to cover its interest payments has slightly weakened over the years.
It is essential for investors and creditors to closely monitor this trend to assess the company's financial health and its ability to meet its debt obligations without jeopardizing its operations or financial stability.